The value of the Indian rupee has been dropping recently. The main reason is ongoing tension and trade problems between the U.S. and India.
Key Problems Causing the Drop:
U.S. Tariffs: The U.S. put a 50% extra tax (tariff) on certain goods coming from India. People hoped this tax would be lowered to 25% after discussions, but it looks like that won't happen soon.
H-1B Visa Fees: The U.S. also increased the fees for the H-1B work visa. This increase is expected to hurt India's business more than any other country's.
The Impact on Money:
These problems have caused foreign investors (people and companies outside of India) to get worried and pull their money out of the Indian stock market.
Last week alone, these investors sold about $1.8 billion worth of Indian stocks. They kept selling this week, too.
What India's Central Bank Is Doing:
The Reserve Bank of India (RBI) has been actively selling dollars to try and slow down the rupee's fall.
Experts say that if the RBI hadn't stepped in, the rupee's value would have dropped even faster and further.
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